Pacific shippers say dock crews are slowing down in Seattle, Tacoma

Los Angeles

PACIFIC Coast dockworkers negotiating a new labour agreement have begun a work slowdown in Seattle and Tacoma, management said on Monday, in the first large job action since their contract expired in July.

The slowdown by members of the International Longshore & Warehouse Union (ILWU) reduced container movement to 10-18 per hour from 25-35, the Pacific Maritime Association, representing terminal operators and shipping lines, said in a statement. The two ports handle an estimated 16 per cent of containerized cargo on the West Coast, it said.

The disruptions come as goods destined for holiday shoppers are unloaded at 29 ports from San Diego to Bellingham, Washington. A strike or lockout could cost the US economy over US$2 billion a day, according to the National Retail Federation and National Association of Manufacturers.

"There was a lot of talk of being able to come to agreement back in August, and a lot of us were optimistic," said Jonathan Gold, vice-president of supply chain and customs policy at the retail federation. "The uncertainty is wreaking havoc with companies' supply chains."

The 20,000-member longshore union has been negotiating with the shippers since May on a new contract to replace a six-year pact that expired on July 1. Union spokesman Craig Merrilees had no immediate comment on the situation when reached by telephone at the organisation's San Francisco headquarters. He said the union would issue a statement later in the day.

'"In Tacoma, the ILWU is not filling orders for skilled workers, including straddle carrier operators who are critical to terminal operations," Wade Gates, a spokesman for the maritime association, said in the statement. "This is like sending out a football team without the receivers or running backs. You can't run the plays without them."

At the Port of Tacoma, most terminals "are still open, but they are experiencing backups", port spokeswoman Tara Mattina said in a statement. Port of Seattle spokesman Peter McGraw referred questions to the maritime association's statement and declined further comment.

Mr Gates said the slowdowns are affecting only Seattle and Tacoma. Steve Getzug, another maritime group spokesman, declined to comment on the status of negotiations.

The two sides announced a provisional deal on healthcare expenses in late August, without disclosing terms. Another issue is how to retrain and preserve jobs for dockworkers as automation reduces the number of positions, as well as salaries and work rules.

The dockworker union and management have said they are working to avoid a repeat of a 2002 lockout that lasted 10 days and cost the economy about US$1 billion a day. Negotiations have alternated between the union and management headquarters, both in San Francisco, with public statements issued jointly until Monday.

Uncertainty over the labour contract didn't stand in the way of port officials in Los Angeles and Long Beach taking measures to alleviate truck and container congestion there.

The four companies that control the majority of truck chassis at the ports of Los Angeles and Long Beach agreed to share the 95,000 vehicle frames to speed the movement of containers and trucks, Los Angeles port chief Gene Seroka said in an interview. Previously, containers could be placed only on chassis from a specific company. "Although there's no real, singular answer to the congestion within the supply chain and the areas that need improvement, this is going to be very good going down the line," Mr Seroka said. BLOOMBERG